The continuing clashes of Thai government and anti-government protesters have a great impact on the economy. Protesters want the current Prime Minister and its members to resign. Chaos left Thailand practically a no-go district for tourists, with shopping stores, restaurants and hotels closed.
Some shopping stores close their businesses because of protesters occupying the area last month. This seems to be unstoppable and could harm Thailand’s growing economy and scare foreign investors and tourists. This is more than drug addiction that needs inpatient drug rehab. Chaos like this will bring damage to the entire region.
Tourism contributes a lot to a country’s economic development. But given the Thailand situation, tourism is expected to decrease in rate. This is bad news because 6% of Thailand’s economy depends on foreign visitors. Tourists are now advised by the British Foreign and Commonwealth Office to rearrange their flight schedules or cancel it.
Clashes between protesters and soldiers left hotels with a 20% drop down on their income. If this problem will continue, it’s predictable that businesses will shut down and economy will be affected. Some shopping stores are bothered by the red shirt zone since the protest began.
Economists are forecasting a 20% lower economic growth if the crisis will not be stopped. The country’s economy mostly depends on exports and surely, the performance this year will be highly affected. Exporters want business assurance and it will not be given to them if the current situation will not be resolved.
The fear of foreign investors is inevitable due to continuing protest and chaos. Some Japanese clients are already delaying their contract signing because of the risk of sales. Some foreign investors are also planning to withdraw their investment since last month, leaving Thailand’s stocks the cheapest in Asia to date.
The country really needs help in facing this problem. They need allies to resolve the chaos that may bring the people and the nation down. Tourists and foreign investors will not gain the courage to spend money if the crisis will worsen. Remember that this is a worldwide phenomenon that affects even the world economy. Crippling Thailand’s business sector has a huge impact on economic growth.